Apple has recognized that it is investing excessively in original television shows and movies that have not gained significant viewership. The company is considering a strategic shift for its streaming service, Apple TV+, after reportedly spending around $20 billion on content.
According to reports, Apple executive Eddy Cue has been in discussions with studio heads Zack Van Amburg and Jamie Erlicht about reducing production budgets. They aim to change the perception that Apple TV+ is the largest spender in the industry.
Apple has invested heavily in various projects, including $250 million for the miniseries “Masters of Air,” which was released this year but did not achieve considerable success. In addition, the streaming service has spent over $500 million on films from prominent directors such as Martin Scorsese, Ridley Scott, and Matthew Vaughn.
Despite these substantial investments, Apple TV+ holds only 0.2% of television viewership in the United States, attracting fewer viewers in a month than Netflix garners in just 24 hours. The platform has also faced challenges in growing its subscriber base.
Though Apple TV+ has encountered issues, the parent company appears unconcerned, as streaming does not constitute a primary focus of its business. However, the unlimited spending model may be coming to an end, evidenced by the company’s hesitance to renew some shows for third seasons.
Additionally, Apple TV+ remains the last major streaming service without an advertising tier, a situation that may soon change following the recent hiring of Joseph Cady, an advertising executive from NBCUniversal.